Pollution traders bullish as EU cuts permit glut: Energy

The cost of polluting is poised to rebound after the European Union began reducing a record glut of permits to rescue the world’s biggest greenhouse-gas market. Carbon prices will climb 32 percent by the end of June, according to the median of 11 trader and analyst estimates compiled by Bloomberg. Options data show traders are the most bullish in three years.
Futures that tumbled as much as 92 percent from their peak in 2008 spurred EU lawmakers in March to curb supply in the $47 billion market by postponing sales of some permits. While carbon rallied as traders anticipated the changes, volatility has also increased. Prices fell 30 percent last week as data on emissions from U.K. power plants missed analysts’ estimates………………………………Full Article: Source